Tax Credits
The Strategy and Finance Committee of the National Assembly passed a special bill for the semiconductor industry at its subcommittee meeting on March 16.
Companies in the industry welcomed the news. The next step is the plenary session scheduled for this month and they are looking forward to another bill passed.
According to the so-called K-Chips Act, a tax credit of 15 percent will be applied to large companies in the industry and 25 percent to those smaller. The current tax credit rates are 8 percent and 16 percent, respectively.
The act is expected to have synergy with large-scale investment plans in the industry. For example, Samsung Electronics announced on March 15 that it would build the world’s largest non-memory chip cluster in Yongin by investing 300 trillion won (US$229 billion).